Research Reports from the Department of Operations

Document Type

Report

Publication Date

9-1-1971

Abstract

A multilocation stochastic inventory problem is dealt with in this dissertation. It is assumed that stock is supplied from a central source and there exists a provision for transfer of stock over the locations. The stockage and transfer decisions are assumed to be centralized. The redistribution is made on the basis of stock review at predetermined points in time between every two consecutive procurement opportunities. Under certain regularity conditions, the optimality of a simple class of transfer rules is established for the two-location system. The optimal stockage rule is also characterized for this system on the supposition that interim transfers will be done in an optimal fashion. The relation of this model to other inventory models and its potential areas of application are mentioned.

Keywords

Operations research, Stochastic processes, Business logistics, Mathematical optimization

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 240

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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